Hi, i've been day trading eur/usd for a while now and was wondering if somebody could help me manage my entry. Since it is impossible to always pick the exact entry that will create an immediate positive position, how do you manage your entry after it's gone red? For example, do you enter with a partial position and add more if it goes against you? Do you apply some sort of martingale strategy, do you only add to the position when it's already profitable? In other words, for the eur/usd for example, let's say a 30pip move is not uncommon, after entry it goes 10 pips against you, what do you do? How do you manage the entry that went against you?
it depends on how you trade, scale in,so your position is an avg price, and work the position til it goes your way,you could wait til it nears a support or resistance area and start scaling in near ,adding when u see it's holding,on longer timeframes the market may retest the trendline within the next 2 or 3 days so you have time to add on the second test....even in daytrading, the oil starts and stops and runs 20 cents from your position and comes back to make you profitable or break even,so selling a 1 lot at 80 and another at 80.20 would normally be foolish,but in that future it pays ,you need to have a max $ cutoff that fits your acct and then trade a style that fits the trading vehicle
FWIW, I saw a recent article that studied entries, and scaling in/out did not seem to help, compared to just getting in or out. Personally, I think any entry, including adding/reducing positions, you should ask yourself, "is the reason to enter valid at his point?"
Entry management is not only important but you have to manage how to grab profits for your ongoing trades, in this case you will need to learn <a href="http://www.stock-trading.me/2010/03/how-do-trailing-stops-work/">how to set your own trailing stops</a>. This is not only an important part of entry management but also pertains to the money management also which is much more important.